Domestic Fuel

At some point in 2012, the final i’s will be dotted and t’s will be crossed so 15% ethanol can finally become the new consumer choice at the pump.

The final panel of the day at last week’s 6th Annual Iowa Renewable Fuels Summit focused on preparations that are being made to make sure retailers and consumers have all the information they need to make an informed choice when it comes to E15.

“A lot of what consumers know now is wrong,” said Ron Lamberty with the American Coalition for Ethanol (ACE).

Lamberty says while there are consumers who are opposed to the use of ethanol and are unlikely to change their minds, there is a good percentage of people who say they would use E15 if it were available. “When we do get E15 out to the marketplace, one of the things we have to make sure we tell people is that it’s out there and they can use it,” he said, noting that the main thing consumers need to know about E15 is that it is the most tested of fuel in history.

Another point that Lamberty believes is important for consumers to know is that the E15 approval for cars and light trucks newer than 2001 is not a mandate. “Approved for and not required,” Lamberty said. “No stations have to sell it and nobody has to buy it,” he said, although the industry believes that once consumers do try it they will want to use it.

As to when E15 will make it to the market, Lamberty says it is anyone’s guess, but he expects Iowa will be one of the very first places it will be available.

Listen to a Lamberty’s presentation at the summit here: Ron Lamberty at Iowa RFA Summit

Listen to an interview with Lamberty here: Ron Lamberty interview

Greg Emick of W&H Cooperative Oil Company spoke as a retailer that has adopted the use of blender pumps last year so they are already offering E15 as a choice in three different locations, along with other mid-level ethanol blends. “Our E15 sales were somewhat slow to increase but the E30 sales jumped right away,” he said. “I feel with promotion, advertising and pubic awareness about E15, it could become a larger percentage of sales at our retail facilities.”

Emick says their customers appreciate that they are promoting flexible fuels because of their environmental friendliness and competitive pricing, and he sincerely believes in the product and wants to see it continue to grow.

Listen to Greg Emick at the summit here: Greg Emick at Iowa RFA Summit

Photos from 2012 Iowa Renewable Fuels Summit

Blender pumps give consumers flexibility and choice of ethanol blends when they are fueling up. Now, the USDA is accepting applications for REAP funds that can be used by retailers who want to install more blender pumps.

This is the second year that blender pumps have been authorized as part of the REAP program. Agriculture Secretary Tom Vilsack announced in 2011 that USDA had plans to install 10,000 blender pumps over the next five years.

That announcement and this year’s opening of the application process is welcome news to the Blend Your Own (BYO) Ethanol campaign, a joint educational effort by the American Coalition for Ethanol (ACE) and the Renewable Fuels Association (RFA). The campaign will again offer free grant writing services to those interested in applying.

“This program provided funding for more than 250 blender pumps last year, providing many consumers with the choice and flexibility they deserve to pick the ethanol blends that work for them based on their vehicle, their beliefs, and their budget,” said RFA Director of Market Development Robert White. “Through the BYO Ethanol Campaign, we have the ability to assist retailers in applying for these funds and help USDA and the Obama Administration achieve the renewable fuel goals they have put forward. With E15 fuel registration due any day, these blender pumps will help spread this new blend across the country.”

“We can break the stranglehold oil has over our nation’s economy and energy future by giving consumers the option to choose clean American fuels that are not petroleum,” said ACE Senior Vice President Ron Lamberty. “In just five years, growing ethanol use has helped us reduce our reliance on foreign oil by more than 10% – to a point where imports are less than half of total demand. We can continue that move toward greater energy independence by getting more ethanol in front of more consumers.”

This program is designed to help spur rural development. This program offers funding for grants, and loan guarantees, but certain restrictions will apply on the size of the local communities and the businesses applying for the funds. Applications for this program are due on March 30, 2012.

A new blender pump is now available at Trotter Service in Arcadia, Neb.

This E85 blender pump is one of approximately 60 in Nebraska to offer the renewable fuel, ethanol. This station will offer unleaded, E10 and other mid-level ethanol blends including E85 and diesel. Trotter Service in Arcadia is a full service station, according to the Nebraska Ethanol Board and the Nebraska Corn Board.

More than 117,000 Nebraska motorists currently own a flexible fuel vehicle which can run on any blend of ethanol and gasoline, up to E85. To confirm if a vehicle is an FFV, drivers can check their owner’s manual or their gas cap for the flex fuel emblem.

“E85 is cleaner than gas. It’s produced right here in Nebraska and more and more vehicles can use it every day,” said Todd Sneller, Nebraska Ethanol Board’s Administrator. “When flex fuel drivers fill up on E85, they’re strengthening Nebraska’s economy, making our country more energy independent and being easier on the environment.”

“Giving consumers a choice is also another benefit. This new blender pump will offer flex fuel vehicle owners a fuel choice based on price, performance, and availability,” said Kim Clark, Ag Program Manager with the Nebraska Corn Board.

Sign up for the Nebraska Ethanol Board’s FFV club for updates of new E85 locations and other announcements.

Warm up with some hot deals on fuel at the High Plains Cenex Station in Plainview, Minn. this Saturday.

From 11 a.m. to 1 p.m., the station will be celebrating the installation of a new blender pump by promoting E85 fuel with an 85 cent per gallon discount. The new blender pump not only distributes E85 fuel, but also a range of mid-level ethanol blends not previously available. These fuels are also being discounted during the promotion: 50 cents off per gallon of E50, 30 cents off per gallon of E30 and 20 cents off per gallon of E20.

There will be deals for diesel vehicle drivers too including a discount of 20 cents per gallon on cleaner burning B5 biodiesel. There is a 30 gallon limit per vehicle during the promotion.

E85, E50, E30 and E20 fuels are for use in flex fuel vehicles (FFVs) only. There are approximately a quarter million FFVs registered in Minnesota. All diesel vehicles can use B5 biodiesel. Minnesota has about 360 E85 stations in the state.

Supporters of the promotion include the Olmsted/South Wabasha County Corn & Soybean Growers, Minnesota Corn Growers Association, Minnesota Soybean Growers Association, Minnesota Clean Air Choice Team and the American Lung Association in Minnesota, which supports the use of E85 and biodiesel fuels as part of an overall strategy to reduce and prevent air pollution.

Ft. Myers, Fla. flex-fuel drivers now can fuel up with E85 thanks to Mid-State Energy, Inc.

The Ft. Myers Marathon station, opened the E85 station last week. Mid-State Energy also opened up a Circle K E85 fueling station in 2010 in Lake Wales, Fla., with partner Protec Fuel.

“Our company believes in not only giving choice to our customers,” said Ken Allen, Jr., president of Mid-State Energy, “but in providing options that will help our country to become more sustainable and help in some little way to minimize our dependence on foreign oil.”

Protec Fuel, based in Florida, has partnered with Mid-State Energy to manage the E85 installation and provide fuel for the company’s new greener burning fuel offering. Protec is a turnkey E85 company specializing in station conversions and fuel distribution. Flex-fuel vehicles can run on E85 and gasoline. E85 is a blend of 85 percent ethanol and 15 percent gasoline.

“We commend Mid-State for its dedication in not just opening one E85 station, but its second station as well,” said Todd Garner, CEO of Protec Fuel. “Plus, Mid-State is not only choosing to offer a cleaner-burning option for customers, but a way to differentiate itself in the marketplace,” he said.

Mid-State Energy says it hopes to offer multiple alternative fuels, such as E85 and biodiesel, at the location someday. Besides E85 selling at a lower cost than conventional gasoline at the Ft. Myers and Lake Wales locations, it is better for the environment and supports our U.S. and local economies.

Officials from the South Dakota Governor’s Office of Economic Development (GOED) are hosting meetings across South Dakota this week to introduce the state’s new Ethanol Infrastructure Incentive Grant Program to petroleum retailers. The program was created to help station owners defray the cost of installation of ethanol blender pumps, which offer consumers a greater variety of fuel choices, including non-ethanol fuels and higher blends like E15, E30, and E85. Funding for the grant program was made possible by a partnership between South Dakota Ethanol Producers and the State of South Dakota.

Representatives from the American Coalition for Ethanol (ACE) are helping educate participants about ethanol blends in the meetings as well.

“The Blend Your Own Ethanol campaign, which is a partnership between ACE and the Renewable Fuels Association, provides marketers across the country with information they need to help them decide whether they want to offer new, higher ethanol blends for their customers,” said Ron Lamberty, Senior Vice President, “and we see the South Dakota program as an example that we hope other states will emulate.”

ACE Director of Market Development Rick Serie says they are happy to be working with South Dakota on this effort.

“We are pleased that the state continues to lead the way in creating programs to encourage marketers to install more blender pumps. A program much like this one was a big success last year, and we are excited that South Dakota’s ethanol producers and the Governor’s Office of Economic Development are willing to continue to support and help implement a program like this that will have so many benefits for retailers and consumers in South Dakota,” Serie said.

South Dakota Governor Dennis Daugaard says $950,000 in grants will be made available through the Governor’s Office of Economic Development to help pay for the installation of blender pumps and associated infrastructure at retail gas stations across the state.

Funding for the grant program was made possible by a partnership between South Dakota Ethanol Producers and the State of South Dakota. During the 2011 legislative session, South Dakota Ethanol Producers agreed to a reduction in ethanol producer payments while temporarily allocating a portion of their remaining ethanol producer payments to the blender-pump grant program and a portion to the Revolving Economic Development Initiative fund. South Dakota produces about one billion gallons of ethanol a year, and blender pumps allow motorists to select their desired blends of gasoline and ethanol.

“By making more ethanol blends available, we are improving producer opportunities, creating jobs, and stabilizing our domestic fuel supplies,” says Gov. Daugaard.

South Dakota was the first state in the nation to allow ethanol blender pumps. More than 100 pumps currently help support South Dakota’s 15 ethanol plants and nearly 900 South Dakotans directly employed by the industry.

Grant awards up to $25,000 are available for installation of a station’s first blender pump. Grant awards up to $10,000 are available for installation of each additional pump. The majority of the grants will be awarded on a first-come, first-served basis; the final 20 percent will be awarded competitively. Informational meetings about the blender pump grant program will be held in January. Meeting times and locations will be announced at a later date.

The American Coalition for Ethanol (ACE) praised South Dakota for creating the grant program for the installation of ethanol blender pumps.

ACE Director of Market Development, Rick Serie, says, “South Dakota has continually looked at ways to get more ethanol to consumers and this program will go a long way toward supporting ethanol plants, hundreds of South Dakotans employed by those plants, and the thousands of farmers and local owners that benefit from the economic activity created by ethanol production.”

Three new pumps that can dispense a range of ethanol blended fuel were officially opened in Princeton, Illinois last week.

Growth Energy, Horizon Fuels, the American Lung Association and Marquis Energy partnered to help with the promotions and labeling for the three new Flex Fuel pumps at the Princeton Fast Stop. “It was time to upgrade our gasoline pumps, so we went with Flex Fuel pumps that will give our customers a choice between E85, E30 and E20,” said Bob Sandhu, owner of Princeton Fast stop and the CEO and President of the MGS Petro Inc. Princeton Fast Stop celebrated the opening of the pumps last Friday, December 16, with special deals on ethanol blends and other promotions. Sandhu is picture here at one of the new pumps with Mark Orr, general manager of Ag View FS in Princeton, a local farmers cooperative that is part of the GROWMARK system.

“By giving consumers more choices at the pump that include higher blends of clean, green homegrown ethanol, we’re not only helping decrease our dependence on foreign oil, but also supporting our local farmers,” said Growth Energy Market Development Vice President Mike O’Brien.

Marquis Energy has a 140 million gallon per year ethanol production facility located just southeast of Princeton in Hennepin, Illinois. “We want consumers right here at home to understand that and now they have the chance to choose for themselves. Marquis is glad people in our local community will be able to use clean burning, renewable fuel that is made just 30 miles away,” said Director of Public Relations of Marquis Energy, Dana Gustafson.

Marquis Energy has contracted with Horizon Fuels to develop opportunities to install Flex Fuel pumps at area retail gas stations and then manage the project scope, equipment installation and promotional efforts for each.

The United States Department of Agriculture’s (USDA) Rural Energy for America Program (REAP) has used more funds to install 54 ethanol blender pumps in twelve different locations. The REAP program funded a total of 266 ethanol blender pumps in 30 states at a total cost of $4.2 million dollars in Fiscal Year 2011.

“The REAP Blender Pump program is a completely new approach to encouraging marketers to install the equipment needed to offer more ethanol blended fuel choices to consumers,” said the American Coalition for Ethanol (ACE) Senior Vice President Ron Lamberty. “266 pumps in 30 states is especially impressive when you take into account how different this program is from the ones used by marketers in the past, and how short a timeframe USDA had to get the information out to marketers.”

Through the program, petroleum marketers were introduced to a competitive grant process that was unfamiliar to most of them, and they had a very short application window of about two months.

“The Blend Your Own (BYO) Ethanol campaign is pleased to have been involved in the planning,” Lamberty said. “Through webinars, grant writing assistance, and face-to-face meetings, we’re glad to have played a part in this program’s success. Funds will be lower in the upcoming fiscal year, so the process will be even more competitive, and ACE and BYO will continue to promote the program and assist marketers who want more information about the REAP flex fuel infrastructure program.”

An amendment offered by Sen. John McCain (R-AZ) that would have stopped funding for Flex Fuel blender pumps was pulled before it came up for a vote this week.

“While the withdrawal of this amendment is an important milestone, we will continue to encourage Congress to oppose any other effort that would erect new barriers to the market,” said Growth Energy CEO Tom Buis.

The amendment was proposed to the 2012 agriculture appropriations bill, which allocates $4.5 million for blender pumps by USDA. Meanwhile, the House has a similar version of the bill that would allocate only $2.3 million for USDA’s energy program with the provision that the funding not be used for pumps.

Hoosier consumers will soon be seeing new flex fuel pumps at fuel retailers across the state thanks to a new program launched by the Indiana Corn Marketing Council (ICMC).

The Flex Fuel Pump Program, unveiled during the Indiana Ethanol Forum in Indianapolis earlier this summer, awarded cost-share dollars to Indiana fuel retailers looking to install flex fuel pumps.

“Hoosier corn farmers believe consumers should have the opportunity to have choices at the gas pump when filling up their vehicles,” said David Howell, ICMC vice president and farmer from Middletown, Ind. “The Flex Fuel Pump Program allows consumers to select the type of ethanol blend they want to use in their flex fuel vehicle and take advantage of the potential cost benefits of using ethanol.”

Read more.

NASCAR has passed the one million mile mark in competition racing on Sunoco Green E15 and issued a report detailing how the 15% ethanol blend performed on the race track this year.

The “One Million Competition Miles on Sunoco Green E15” report, released today in Washington D.C., shows the qualities of E15 as a racing fuel this first year of use in the NASCAR Sprint Cup Series™, NASCAR Nationwide Series™ and NASCAR Camping World Truck Series™. With more than 1.3 million miles accumulated in practice, qualifying and racing laps in NASCAR racing vehicles since the racing season began in February with the Daytona 500, the report details the performance of mid-level ethanol blends.

“Before NASCAR switched its fuel to Sunoco Green E15 at the start of the 2011 racing season, there was extensive analysis and deep consideration about the decision,” said Mike Lynch, Managing Director of Green Innovation for NASCAR. “Successfully transitioning to the new fuel and surpassing a million miles, all on America’s toughest proving ground, is a validation of Sunoco Green E15 as a high-performance racing fuel and is part of our overall effort to go green. NASCAR is proud to use this American-made product because it creates American jobs while also reducing harmful emissions.”

NASCAR’s switch to 15% ethanol fuel came together from a partnership with American Ethanol, established by Growth Energy and the National Corn Growers Association (NCGA).

“It is time we moved forward with E15. This is yet another testament to E15’s value as a fuel. If E15 can fuel the dozens of drivers in dozens of different vehicles every weekend without issue, then it stands to reason that E15 can be used in everyday street cars by everyday Americans,” said Tom Buis, CEO of Growth Energy.

“E15 is performing like champ in the most rigorous driving conditions on the planet and that’s good news for everyone who supports renewable fuels,” said NCGA president Bart Schott.

Read the report here.

A new white paper released by Gold Eagle Co aims to answer questions about ethanol blended gasoline. Gold Eagle sells aftermarket fluids and additives such as STA-BIL Ethanol Performance Improver. “Petroleum Production, Distribution and Discussion of the use of Ethanol Blended Gasoline” answers such questions as, How is gasoline produced? What is ethanol’s impact on gasoline? What is phase separation? and more.

“Through our conversations with our retail customers and consumers, we believe there is a need to educate the general public on the gasoline refinery process because there is much mis-information, particularly when it comes to ethanol-blended gasoline,” said Mike Profetto, vice president of Product Engineering at Gold Eagle Co.

“We developed a white paper to shed light on the complexity of gasoline – particularly the refining and distribution process and explain the technical aspects as to why gasoline is designed to meet ASTM specifications. The report also highlights the history of ethanol and governmental requirements for biofuels through 2022 and defines ethanol blend fuel specifications and its use throughout the U.S.,” he continued.

In 2010, as estimated 13.23 billion gallons of ethanol were produced in the States. Also in 2010, the Environmental Protection Agency approved the Green Jobs Waiver, allowing the use of E15 in cars and light duty trucks 2001 or newer. However, E15 was not approved for small engines, marine and other specialty engine types.

“We believe that by staying informed about ethanol’s functionality and impact on vehicle performance, automotive repair personnel and consumers alike can help ensure they take proper preventative measures to ensure their vehicles continue to operate smoothly,” added Profetto.

Missouri has been recognized by the U.S. Department of Agriculture as the leader in ethanol blender pumps.

During the Missouri State Fair, an official from USDA’s Rural Development agency paid a visit to recognize Missouri as the national leader in renewable energy. Through a partnership with the Missouri Corn Merchandising Council (MCMC), the Association of Missouri Electric Cooperatives and the Missouri Department of Agriculture, Missouri fuel retailers have been approved to install 26 biofuel pumps – more than any other state in the nation.

“It’s the Show-Me State and they’re showing us alright,” USDA Rural Development Business Program Administrator Judy Canales said during a speech at the Missouri Corn booth. “It behooves Missouri because in the long run this is going to be a locally grown product that is creating and keeping jobs in rural communities. That’s why we’re so pleased to have this partnership with Missouri Corn.”

“Missouri Corn is leading the charge in growing Missouri’s use of renewable fuels and giving consumers choices at the pump,” noted Missouri Corn Director of Ethanol Policy Bradley Schad. “By providing these ethanol options, consumers can now choose a lower cost fuel alternative for their vehicle while supporting Missouri’s rural economy, keeping dollars here at home and reducing our dependence on foreign oil. We commend the USDA for their efforts to expand the availability of biofuels for consumers.”

In this photo from Missouri Corn, Canales and Schad pose with other members of the partnership at the Missouri State Fair. Left to right: Missouri Corn board member Rob Korff of Norborne, Mo.; Matt Moore, Missouri USDA Rural Development business program director; Barry Hart, executive vice president of the Association of Missouri Electric Cooperatives; Judy Canales, USDA Rural Development business program administrator; Bradley Schad, Missouri Corn director of ethanol policy; Gary Marshall, Missouri Corn CEO; Janie Dunning, Missouri state director USDA Rural Development; Kenny McNamar, Missouri Corn Growers Association president from Gorin, Mo.; and Billy Thiel, Missouri Corn Merchandising Council chairman from Marshall, Mo.

Read more from Missouri Corn here.

There will be a celebration at the Glencoe Coop on August 8th to mark the installation of the community’s first blender pump. The project was supported by a $6,771 grant from the Rural Energy for America Program (REAP) that was created in the 2002 Farm Bill. The program helps with the purchase and installation of renewable energy systems and energy efficiency improvements on farms and rural businesses.  President Obama’s administration has set a goal of installing 10,000 blender pumps across the country withing the next 5 years.

The station, located at Glencoe, Minnesota, will be hosting a ribbon-cutting ceremony on Monday, August 8th beginning at 10:45 am CST. Representatives from the Minnesota Corn Growers Association and the U.S. Department of Agriculture will be on hand along with a number of other special guests. Following a brief presentation, a flexible fuel vehicle (FFV) pump promotion will take place from 11:00 am – 1:00 pm sponsored in part by the American Lung Association of Minnesota. Fuel discounts during the promotion are as follows and mid-level blends of ethanol can only be used in FFV’s but everyone is welcome to come to the event to show their support for fuel choice at the pump.

• · 85 cents off per gallon of E85
• · 50 cents off per gallon of E50
• · 30 cents off per gallon of E30
• · 20 cents off per gallon of E20